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Efficiency and Acceptability of Climate Policies: Race Against the Lock-ins

Abstract : Policymakers have good reasons to prefer capital-based policies - such as CAFE standards or feebates programs - over a carbon price. A carbon price minimizes the discounted cost of a climate policy, but may result in existing capital being under-utilized or scrapped before its scheduled lifetime, hurt the workers that depend on it, and inflict an immediate income drop. Capital-based policies avoid these obstacles, but can reach a given climate target only if implemented early enough. Delaying mitigation policies may thus create a political-economy lock-in (easier-to-implement policies become unavailable) in addition to the economic lock-in (the target becomes more expensive).
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Soumis le : mardi 10 décembre 2013 - 18:27:12
Dernière modification le : mercredi 14 octobre 2020 - 03:49:57
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Julie Rozenberg, Adrien Vogt-Schilb, Stéphane Hallegatte. Efficiency and Acceptability of Climate Policies: Race Against the Lock-ins. Review of Environment, Energy and Economics, 2013, pp.2013.11.002. ⟨10.7711/feemre3.2013.11.002⟩. ⟨hal-00916861⟩

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